Bitcoin Mining Firm Marathon Digital Holdings Subpoenaed by SEC for Alleged Securities Law Violations
Marathon Digital Holdings, a Bitcoin mining company, has received a subpoena from the SEC related to alleged violations of securities laws. The subpoena, received on April 10, 2023, is related to transactions with related parties and the SEC may be investigating whether there were any violations of federal securities law. Marathon is cooperating with the SEC on the matter, which relates to its data center facility in Montana. The company has also released its Q1 2023 financial results, recording a net loss of $7.2 million and producing a record 2,195 Bitcoin in the quarter.
Ripple CEO Brad Garlinghouse Predicts End Date for SEC Lawsuit Within Next 2-6 Months
Ripple CEO Brad Garlinghouse has provided a new estimate for the end of the SEC lawsuit, stating that he expects a resolution within the next two to six months. Garlinghouse believes that Judge Analisa Torres currently has the decision on her plate and although she may operate on her own timeline, he is confident that the ruling will come before the end of Q3 2023. This is not the first time Garlinghouse has commented on the end date of the lawsuit, having previously predicted that the case would be concluded in the first half of this year. Despite disappointment from some experts over Judge Torres' ruling, Garlinghouse remains optimistic about the outcome.
Ripple Considers Moving Offshore Amid Lack of SEC Regulatory Clarity
Ripple Labs is considering moving offshore due to the Securities and Exchange Commission's (SEC) lack of clarity over regulations for digital assets. The SEC's regulation by enforcement regime has been criticized by the U.S. House Committee on Financial Services Republicans for pushing innovation in the crypto industry overseas and threatening American investors and competitiveness.
US Congressman Questions Need for New Legislation on Digital Assets in Joint Committee Meeting
The House Financial Services Committee and House Agriculture Committee held a joint meeting to address the lack of government oversight in the digital assets sector. While some members emphasized the need for legislation, Rep. Stephen Lynch expressed concern that creating a separate regulatory regime through legislation could be viewed as a light touch and could encourage other sectors to move their financial products into the digital-assets space.
Lawmakers Propose New Framework for Crypto Market Regulation in the US
Lawmakers in the House Agriculture and House Financial Services committees discussed the need for regulatory clarity in the crypto market structure in the United States during a joint hearing of the digital assets subcommittees. The competing enforcement actions by the SEC and CFTC have forced entrepreneurs, developers, and job creators offshore, and the proposed framework aims to address this issue. The framework includes tailored compliance pathways and modernizing securities regulations to suit the reality of crypto marketplaces dealing directly with retail customers.
Marathon Digital Receives New SEC Subpoena Regarding Montana Facility Investigation
Marathon Digital, a bitcoin mining company based in the United States, has announced that it has received a new subpoena from the Securities and Exchange Commission (SEC) regarding an ongoing investigation into a facility in Montana. According to the company's May 10 filing, the SEC is investigating whether there have been any violations of federal securities law. Marathon has stated that it is cooperating with the agency. The latest subpoena was received on April 10, and Marathon's stock closed at $10.22, up about 9% on the day.
US House of Representatives Considers Need for New Rules on Crypto and Digital Assets
A recent joint committee hearing in the US House of Representatives revealed a consensus on the need for new regulations for digital assets, but also highlighted differences in opinions on what those policies should entail. Despite challenges, industry advocates and crypto holders may be encouraged by the urgent desire to act from senior members of both political parties. Republican chair of the House Financial Services Committee, Rep.
US Chamber of Commerce supports Coinbase's request for SEC to write rules for cryptocurrency
The US Chamber of Commerce has supported Coinbase's request for the US Securities and Exchange Commission (SEC) to establish rules for cryptocurrency. The Chamber highlighted that there is no clarity on which digital assets are securities under federal law, and the SEC has not resolved this issue despite being the primary regulator of digital assets. The Chamber, which represents over 300,000 members, argued that the SEC's delay in rulemaking has caused confusion and instability in the crypto industry.
Former SEC Official Urges U.S. Regulators to Ban Tether USDT, Calling It a "Mammoth House of Cards"
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark has called for a ban on crypto firms offering Tether USDT, describing the stablecoin issuer as a "mammoth house of cards." Stark highlighted concerns over Tether's unaudited reserves and lack of regulatory oversight, stating that the stablecoin issuer could be the next domino to fall. He also criticized Tether's attestation, stating that it cannot replace an audit and leaves more questions about its reserves. Stark urged the U.S. to follow Ontario's lead in banning crypto platforms from offering Tether USDT.
US Representative Speaks Out Against "Regulation by Enforcement" in Historic Digital Assets Hearing
During a joint Subcommittee hearing on digital assets, US Representative Bryan Steil criticized the current "regulation by enforcement" approach and stated that there are no clear rules for the crypto market. He also mentioned that SEC Chairman Gary Gensler failed to provide a path forward for crypto regulation.
